Do you know your credit score? Learning your credit score is useful for a variety of reasons. Your credit score can not only enable you to access more financial products but it can also influence the price that you pay for these products too. There are three easy ways how to check your credit score UK.
What is a Credit Score?
A credit score is a number between 0 and 999. The higher the number, the better your credit rating.
Your credit score is a snapshot of your credit history. It’s calculated by one of three credit agencies in the UK – Equifax, Experian, or Transunion. These agencies take information from organisations you have accounts with, such as banks and mobile phone providers, and use this to calculate your credit score.
Your credit score also provides lenders with an idea of how likely you are to repay any money you borrow from them on time. If your score is low it might be harder for lenders to give you a loan or even let you open an account with them.
Why is a Credit Score Important?
A credit score is an important factor in determining your financial stability. A good credit score can save you money, while a bad one could cost you money. By checking your credit score, you will have time to improve your rating before applying for new credit cards or mortgages. This gives you more bargaining power and lets you negotiate better deals. If you have a bad credit score, it could affect your ability to get a loan or even a new phone contract.
Credit Score, or Credit Report?
A credit score is a number that shows lenders if you are a reliable borrower. Your credit score will range from 0-999 and the higher it is, the more likely you are to be given credit by lenders. A good credit score can get you better deals on things such as loans, mortgages, and mobile phone contracts.
A credit report is a written document that lists your borrowing history. It includes details of your current and previous addresses, who you have borrowed money from in the past, whether or not you have paid back this money on time, how long you’ve had certain accounts for, and many other details.
Your credit score is based on the information in your credit report so they are linked but they aren’t exactly the same thing. You can receive a copy of both by contacting one of the UK’s three main Credit Reference Agencies (CRAs) – Experian, Equifax, or TransUnion (formerly CallCredit).
Credit Referencing Agencies in the UK
To find out what information the credit agency has, you will need to request a copy of your credit report. If you are applying for a new mortgage, loan, or credit card, the lender will ask which agency they should contact to get your report. It will depend upon who offers the best service and rates in that area.
Experian
Experian is the UK’s most trusted consumer credit reporting company. They are a credit reference agency and provide their customers with a host of consumer reports, including credit scores, which are based on Experian’s extensive consumer data collection.
Experian will show you a number between 0-999 for free. However, you will need to pay for their CreditExpert subscription if you’re wanting to find out more about your credit report.
Equifax
Equifax is a consumer credit reporting agency in the United Kingdom one of the “big three” that provides credit reports to UK lenders, alongside Experian and Transunion. It maintains information on more than 24 million people in the UK.
Equifax allows you to get your free Equifax credit report once per year by mail or online. You can also sign up for a paid subscription service (either monthly or quarterly) if you want to receive an updated report more frequently.
Equifax will show you a number between 0-1,000. This used to be 0-700 however they changed it in 2021. Some people may still see a score out of 700.
Transunion
TransUnion is one of the three biggest credit reference agencies in the UK, along with Equifax and Experian.
Headquartered in Chicago, TransUnion has a presence in 33 countries around the world, including the UK. The company was founded in 1968 as one of the first credit bureaus to sell consumer credit information to businesses.
Transunion will show you a number between 0-710.
How To Check Your Credit Score UK – Apps
Nowadays, there are numerous apps on the market that allow you to check your credit score for free, and I’ve listed a few of the best ones below:
Experian
The Experian app is free to download and on this app, you can check your credit score. The app also provides you with a breakdown of your credit profile, which shows what is helping and what might be damaging your credit score if you’re a CreditExpert member – their paid subscription.
ClearScore
There is another option to check your credit score UK and it’s the ClearScore app. It is a very convenient way to get an update about your Equifax credit score.
You simply download it for free in the App Store or Google Play, create an account and you will instantly see your credit report and score as well:
The ClearScore app also offers some useful information such as how you can improve your score if it’s low or why were points deducted from your score etc. It even sends you an email every month when something changes in your report!
CreditKarma
Credit Karma is a website and app that provides free credit scores, up-to-date credit monitoring, tools to help you understand your credit score, and even offers credit education.
The Credit Karma App uses the same TransUnion score that lenders use when making decisions about providing financing. It will also show you their recommendations on how to improve your credit rating.
When to talk to a Money Coach about your Credit Score
You might consider approaching a money coach regarding your credit score in several situations. Firstly, if you’re planning to make a significant financial move, such as buying a home or a car, where a good credit score is crucial for favorable loan terms. A money coach can provide guidance on how to improve your credit score and optimize your financial profile before applying for a loan. Additionally, if you’ve faced challenges such as late payments, defaults, or errors on your credit report, a money coach can assist in navigating the process of rectifying these issues and rebuilding your credit. Some people also seek the advice of money coaches when they’re unsure about how certain financial decisions might impact their creditworthiness. Ultimately, consulting a money coach early in the process can help you develop a proactive and informed approach to managing your credit, ensuring that you’re in the best possible position for your future financial goals. Get in touch today!
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